The Government delays implementing IR35

March 25, 2020

Whilst the overall sentiment regarding the delay of implementing IR35 for 12 months has been understandably euphoric, it is wise to see this purely as a temporary delay to April 2021, rather than a green light for contractors to ignore the tax legislation requirements for the next year.

The current Coronavirus evolving situation presents a far greater threat to the recruitment sector than IR35, which will require a great deal of careful navigation and innovative thinking to ensure survival through these unprecedented times.

Some umbrella companies were also forecasting huge growth in contractor numbers, as Limited companies switched to a more “secure” tax status, as far as recruiters and hirers were concerned. This is now on hold until 2021.

It certainly does no harm for recruiters to continue engaging with hirers where possible on an ongoing basis, to reassess the status of Limited company contractors. This way, when the implementation comes in April 2021, everyone will be better prepared.

Given all the problems surrounding Coronavirus, the IR35 delay is a glimmer of good news for workers and the economy, removing the risks facing hirers and agencies for the next 12 months, before we must revisit.